Just when you thought that the STEEM cryptocurrency was clear of its month-long volatility, it hits another batch of choppy waves. Although the Steemit coin is firmly back above the one-dollar mark, it's presently almost 30% below July's all-time high.
When will Steemit users finally catch a break? In the nearer-term, STEEM faces a significant amount of chop -- rumblings based on the bitcoin softfork continues to reverberate throughout the blockchain markets. Furthermore, STEEM itself has a very high statistical correlation with bitcoin, which is not doing Steemit any favors.
That said, I remain optimistic over the next few months. Here's two reasons why:
Technical Support
Since July 11, STEEM has formed a rising support line. This was violated briefly on the 15th and 16th of this month, when the Steemit coin fell below the one-dollar mark. However, I believe that movement is an anomaly.
In future price behaviors, the aforementioned rising support has prevent STEEM from going into sub-dollar territory. Cryptocurrency investors are emboldened with bitcoin's negotiating breakthrough, and capital inflows are returning.
Trading Variance
Between July 7 through the 15th, trading variance between the close and highs of the session was extremely high -- almost 13%! That's calmed down significantly as the days passed by. Even the burst of variance on the 25th cannot deny the fact that bearish trading is on the decline.
This further supports the thesis that the bulls, or the strong hands of the Steemit market, are regaining control. I interpret this juncture as a time to consider adding to your position rather than selling off.